RHB Bank has won Bank Negara Malaysia approval to start talks with Tokio Marine Asia on a possible sale of up to 100% of RHB Insurance Bhd, according to reports on Tuesday. [1, 2, 3]
The proposed transaction would fold RHB's general insurance business into a combined operation with Tokio Marine, while RHB would keep up to a 35% stake in the enlarged entity. [1, 2]
Analysts said the deal looks more likely to go through than RHB's failed 2018 attempt, when it had proposed selling up to 94.7% of its general insurance unit to Tokio Marine before the plan was called off. [1, 2]
CIMB Securities said the prospects for a concrete deal appear stronger this time after RHB and Tokio Marine Life, together with Syarikat Takaful Malaysia Keluarga Bhd, signed an exclusive 20-year bancassurance deal on Aug. 1, 2025. The broker said the deal depended on a unified banca operating model that could benefit all parties. [1, 2]
The latest approval gives the sides six months from the date of BNM's letter to complete negotiations. Any definitive agreement will also need approval from the finance minister on BNM's recommendation. [1, 2]
Analysts said pricing and merger synergies will decide whether the transaction closes. Maybank Research estimated that a 35% stake could bring RHB RM103 million in net profit and lift FY2025 net profit by 9%, while the broader group profit increase would be about 0.3%. [1, 2]
The deal could also help Tokio Marine work around Malaysia's 70% foreign shareholding limit for domestic insurers. Analysts said the integrated partnership could give the combined business close to 10% of Malaysia's general insurance market. [1, 2]
If completed, the plan would shift RHB from an owning-and-underwriting model to a capital-light, distribution-led bancassurance model with minority participation. [1, 2]
